Blockchain Technology in Supply Chain – a technology to source products right from their points of origin:
‘’Manage the supply chains right from an ecosystem level to the extent of globalization with blockchain’’.
In general, the supply chain approaches are characterized by the utilization of technology like blockchain, as it seems to be the best technology ever in addressing the most pressing challenges of the supply chain sector.
In this blog, you will come to know about the aspects like what actually the power of blockchain in the supply chain is, the need for integrating blockchain into the supply chains, and how blockchain captivates supply chain management.
Come; let us make a deep dig into the concept….
Even Though the supply chains are found to undergo some major transformations every now and then, a majority of the organizations these days are not up to the mark in bringing those transformations live their business management aspects. This paves way for the gap to exist in the technology update of supply chains and this could be sorted out potentially via blockchain.
Yes! blockchain is now more than a need for the supply chains to enhance their efficiencies both in terms of operational management and profit generation. Moreover, blockchain facilitates achieving transparency, trust, and inter-operability in the modern supply chain systems. This is how the blockchain implementation finds its importance when it comes to product supply chain management.
The core logic of blockchain implementation is that the products moving freely across the supply chain network (from node to node) get transformed to finished goods and the appropriate transactional status gets updated and is open for each and every participant of the system. All these happen just in a matter of seconds and this is where the power of blockchain can be analyzed. Thus, blockchain serves to be a completely traceable solution for the supply chain system ever.
Primary benefits of implementing blockchain technology in supply chain:
- Security with financial transactions.
- Data privacy
- Reliability
- Cutting down the middleman intrusions with cost reduction; blockchain itself can handle all the complexities possible with the system.
- Traceability
- Transparency
- Saving time and effort.
How the blockchain-tethered supply chain favors the entrepreneurs?
The blockchain-enabled supply chain can help organizations hold a digital transactional ledger, where all the supply chain transactional information is stored and made available for future reference. Through the supply chain blockchain, it is very much easier for any organization to track and trace the exact movements of products within the complex value chain, thus ensuring a greater level of transparency and traceability.
Data visibility:
Organizations use to offer discounts depending on the total number of purchases made for a particular product. Such negotiation happens only when the organization is about to get access to the overall purchase details. But, it is not that simple and it is really hard to track the exact product purchase details, as it involves a lot of third-party subsidiaries and a wide range of business partners operating in the network.
Yet, it can be achieved with the help of the most demanding technology blockchain. The digital ledger takes here takes the responsibility of collecting accurate information relevant to product purchases made in each and every node of the supply chain network. Thus regardless of who initiated the purchase process, an organization can view the total purchase volume for products via blockchain with ease.
This in turn helps the organization in negotiating the discounts for the appropriate products, thus making the end-users enjoy the benefit of getting huge discounts; Also from the organizations’ perspective, the total number of purchases will get increased thus resulting in enormous profit generation.
This is how the visibility with blockchain gives mutual benefits for both the producers and the consumers.
Automated audits:
Usually, the companies hire some auditing professionals to take care of their business order volume tracking. For this, they spend some amount of money and this can be completely down with the help of blockchain intrusion. The reason here is that blockchain itself can capture the overall purchase volume of the chain and it is done in an automated manner with no manual errors entertained.
Result-driven data:
‘’Better data leads to better results (business outcomes)’’
Renewal of business ideas, concepts, and methodologies are what the normal procedures needed to be done in a supply chain business system for every quarter or for a certain period of time. This means that updates are to be made to make the system more efficient than before in the upcoming days. Here is where the blockchain comes in to make the required updates in any supply chain system. Yes with blockchain, companies can most probably avoid spending some extra penny needed on the inventory part of their business processes.
Blockchain in supply chain management:
Obtaining efficient outcomes in supply chain management is somewhat ridiculous. But, blockchain makes it simple with the following traits:
Digitalization:
The smart contract digitalization via blockchain helps the supply chains come out with the best performances ever. The payment digitization as well helps in making convenient and faster payments with better accuracy.
Bridging the payment gaps:
The traditional types of payment procedures introduce a major range of complexity in the supply chain system that the enterprises are unable to cope up with the payment standards while initiating and transacting payments upon product purchases. But, the blockchain acts as a smarter payment system that accounts for the elimination of these inefficiencies while making transactions by being up to the mark incoherence to the industry demands.
What can you do with our blockchain-powered solutions?
Being an innovator of the blockchain industry, Tracefood offers efficient supply chain blockchain solutions that work right away in renovating the supply chain networks of its global clients.
By the way, you as our client can be able to calculate the total purchase volume and discount of the product distributed over the supply chain network accurately with no hassles. You can maintain your business data privacy as well with us.